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Vertoz Ltd, one of the top AI-driven media and ad companies, has announced a significant corporate move by approving the consolidation (sub-division) of its equity shares in a ratio of 10:1. The action, approved by the Board of Directors, has been taken to increase share liquidity and make the stock more liquid for a broader base of investors.
Key Highlights
10:1 Stock Split Approved:
The Vertoz Ltd Board has sanctioned the sub-division of every fully paid equity share of face value ₹10 into ten fully paid equity shares of face value ₹1 each, pending shareholder sanction. The total number of shares will be more, and the share would become more accessible for retail investors.
Share Capital Structure Change
The authorized share capital of the company will be changed proportionately, and the equity shares will increase from 42,322,500 (₹10 each) to 426,150,000 (₹1 each).
Record Date and Shareholder Approval:
The record date of the stock split will be declared after shareholder approval at the next general meeting.
Recent Performance and Corporate Actions:
This is Vertoz's inaugural stock split. The firm also carried out a 1:1 bonus issue in July 2024, which doubled the equity shares for current shareholders.
Shareholder Impact:
The split will increase the number of shares owned by investors tenfold, while the total value of their holdings does not change. For instance, a shareholder owning 100 shares of ₹10 each will get 1,000 shares of ₹1 each after the split.
Rationale:
The stock split is likely to enhance liquidity, draw more investors, and see higher trading volumes, in consonance with the company's expansion and investor-conducive policy.
The Board of Directors has given its approval to sub-divide every one of the fully paid Equity Share of the Company with a face value of Rs. 10/- each in the Authorized and paid-up Share Capital of the Company, into 1 Equity Share with a face value of Re. 1/- each, fully paid-up," stated Vertoz in its regulatory filing.
Source: Goodreturns, Business Standard, Vertoz Ltd (Regulatory Filing), MoneyWorks4Me
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